EUR/USD retains a firm undertone ahead of the ECB policy decision. Economists at Scotiabank analyze the pair’s outlook.

40-DMA emains an important bellwether for the EUR/USD rebound

The EUR/USD  pair might be overshooting spreads to some extent in the short run but the trend higher in spot looks well-established and the EUR is likely to remain supported on dips. 

Gains through the 40-DMA (1.0857 today) should see spot push on to the low 1.09 area and put a return to 1.10 on the radar.